XRP (CRYPTO: XRP) is down 2% on Friday, pressing onto the $1 psychological level with thin weekend liquidity ahead and a chart setup pointing toward $0.85.

Why $1 Is The Level That Matters This Weekend

The chart projects a 15% to 17% drop from $1 if the level fails on a daily or weekly close, with $0.85 to $0.88 as the measured move target based on the depth of the two-month compression pattern.

RSI at 34.19 sits near oversold territory but has not reached an extreme yet, meaning there is still room to fall before a technical bounce becomes likely. 

Weekend volume is thin, and breakdowns in low liquidity tend to overshoot rather than find clean support.

What ETF Flows Are Showing

XRP ETF inflows hit just $1.01 million this week, well below the prior three weeks of $14.86 million, $8.15 million, and $6.78 million respectively according to SoSoValue. 

The institutional momentum that built through July has clearly slowed heading into the weekend.

Friday’s session has yet to report its flows, but even a few million dollars in additional inflows would likely leave this week’s total well below previous weeks.

Why The Clarity Act Failed To Help

Senate Banking Committee Chairman Tim Scott (R-SC) said Thursday the Senate should hold a procedural vote on the Clarity Act before recess. 

However, Senate Majority Leader John Thune (R-SD) held a vote on the budget resolution instead, with no cloture filing on the Clarity Act confirmed at publication time. 

XRP fell further on the news, with regulatory clarity remaining one of the token’s key narrative drivers.

What The Derivatives Data Is Showing?

Volume jumped 16.52% to $2.52 billion Friday as traders pile in around the $1 level according to Coinglass. Nearly everyone is still positioned for a bounce, with long/short ratios at 3.0 on Binance, 3.7 on OKX, and 3.57 among top traders.

The problem is the longs keep losing. Long liquidations hit $11.75 million in 24 hours against just $310,000 in shorts. 

Shorts are barely touched while bulls absorb hit after hit. Open interest dipped slightly to $2.34 billion as some traders finally gave up and closed positions.

With most traders still long into a falling price at the most critical level on the chart, a $1.00 break could force a wave of selling that pushes XRP lower faster than the chart target alone suggests.

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